Project Management Project Governance and Compliance 5 — Questions and Answers
Question 1: A project manager is managing a government contract that requires specific documentation be retained for seven years after project closure. This is an example of:
- Scope management requirement
- Records retention compliance requirement (Correct answer)
- Quality control standard
- Resource management policy
Correct answer: Records retention compliance requirement
Government contracts frequently impose records retention requirements that are legal compliance obligations the project and organization must meet long after closure.
Question 2: In a matrix organization, a project manager disagrees with a functional manager's resource allocation decision that violates project governance policy. What should the PM do?
- Override the functional manager's decision unilaterally
- Accept the decision since functional managers outrank project managers
- Escalate through the established governance channel (e.g., PMO or sponsor) (Correct answer)
- Remove the resource from the project team immediately
Correct answer: Escalate through the established governance channel (e.g., PMO or sponsor)
In a matrix organization, governance conflicts between project and functional authority should be escalated through the defined governance structure, such as the PMO or project sponsor.
Question 3: Which of the following BEST describes the concept of 'tone at the top' in project governance?
- The volume level required for effective team meetings
- Senior leadership modeling and reinforcing ethical and compliance behavior that cascades through the organization (Correct answer)
- The importance of the project charter being signed by the highest executive
- Setting aggressive performance targets for the project team
Correct answer: Senior leadership modeling and reinforcing ethical and compliance behavior that cascades through the organization
Tone at the top refers to the culture and behaviors demonstrated by senior leaders, which strongly influences how governance and ethics are practiced throughout the organization.
Question 4: A project manager learns a team member has been falsifying progress reports. What is the MOST appropriate immediate response?
- Correct the reports quietly to avoid embarrassing the team member
- Document the situation and escalate to the appropriate authority per organizational policy (Correct answer)
- Warn the team member privately with no formal action
- Ignore it if the project is otherwise on track
Correct answer: Document the situation and escalate to the appropriate authority per organizational policy
Falsifying reports is a serious ethics and governance violation that must be documented and reported through proper channels, regardless of project status.
Question 5: A Change Control Board (CCB) is BEST described as:
- A team responsible for writing change requests on behalf of stakeholders
- A formally chartered group authorized to review, evaluate, approve, defer, or reject changes to the project (Correct answer)
- An external regulatory body that audits project changes
- A software tool used to track project changes
Correct answer: A formally chartered group authorized to review, evaluate, approve, defer, or reject changes to the project
The CCB is a governance body with explicit authority to make binding decisions on change requests affecting project baselines.
Question 6: SOX (Sarbanes-Oxley Act) compliance affects IT projects in publicly traded US companies primarily by requiring:
- All software be developed using agile methodologies
- Strong internal controls, audit trails, and accountability for financial reporting systems (Correct answer)
- Projects to be completed within a two-year window
- All project managers to hold a CPA certification
Correct answer: Strong internal controls, audit trails, and accountability for financial reporting systems
SOX mandates rigorous internal controls and audit trails for systems that support financial reporting, significantly affecting IT project governance in public companies.
Question 7: When a project closes, what governance activity ensures the organization captures and applies lessons about compliance performance?
- Scope verification
- Lessons learned documentation and organizational process asset updates (Correct answer)
- Final cost reporting
- Formal stakeholder sign-off
Correct answer: Lessons learned documentation and organizational process asset updates
Lessons learned documentation captures what worked and what failed in compliance management, feeding those insights back into organizational process assets for future projects.
Project Management Project Governance and Compliance 5
A project manager is managing a government contract that requires specific documentation be retained for seven years after project closure.
This is an example of: